A property casualty insurance company provides the following financial information. Calculate the amount of operating expenses. (Note:that the company lost money on investments during the year).Premiums written:Losses:Loss Adjustment Expenses:Operating Expenses:Dividends Paid:Investments (Loss):Operating Ratio:$500 M$326 M$54 M$? M$6 M-$11 M106%

Operating ratio measures the business efficiency that describes as how the company can manage its…

Answered: A property casualty insurance company…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Casualty gains and losses from business or investment property: a.Are subject to the 10 percent of adjusted gross income limitation. b.Are not subject to the depreciation recapture provisions. c.May be treated differently depending on whether the property has been held 1 year or less or has been held over 1 year. d.Are treated the same as casualty gains and losses from personal property.
The income statement disclosed the following items for the year: Depreciation expense $57,400 Gain on disposal of equipment 33,510 Net income 494,300 The changes in the current asset and liability accounts for the year are as follows: Increase(Decrease) Accounts receivable $8,950 Inventory (5,090) Prepaid insurance (1,910) Accounts payable (6,070) Income taxes payable 1,910 Dividends payable 1,340 a. Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
These items are taken from the financial statements of Sandhill Co, at December 31.2022 Buildings Accounts receivable Prepaid insurance Cash Equipment Land Insurance expense Depreciation expense Interest expense Common stock Retained earnings (January 1, 2022) Accumulated depreciation-buildings Accounts payable Notes payable Accumulated depreciation equipment Interest payable Service revenue $103,684 12.348 3,136 11,603 80,752 59,976 764 5,194 2,548 58,800 39,199 44,688 9,310 91,728 18,346 3,528 14,406 Prepare a classified balance sheet. Assume that $13,328 of the note payable will be paid in 2023. (List Current Assets in order of liquidity and Property, Plant and Equipment in order of Land, Buildings and Equipment.)
The following is list of accounts each represented by letter(s). A Accounts Payable U Loss from discontinued operations B Accounts Receivable V Losses due to fire E Accumulated Depreciation-Equip W Merchandise Inventory F Bonds Payable X Notes Payable G Cash Y Premium on Bonds Payable H Cost of Goods Sold Z Rent Expense I Capital Lease Payable AA Rent Revenue J Discount on Bonds Payable BB Retained Earnings K Equipment EE Salaries and Wages Payable L Federal Income Tax Withheld Payable FF Sales Returns M Federal Unemployment Taxes Payable GG Sales Revenues N FICA Taxes Payable HH Sales Taxes Payable O Income Summary II Shipping Expense P Income Taxes Payable JJ State Income Tax Withheld Payable Q Interest Expense KK State Unemployment Taxes Payable R Interest Payable LL Supplies S Land MM Tax Expense T Land Improvement NN Unearned Rent Revenue Example of Answer: G4000D,B2000D,GG5000C,HH1000CWhere G denotes…
The following information is for Novak Auto Supplies: Cash Prepaid Insurance Accounts Receivable Inventory Land Held for Investment Land Buildings Less Accumulated Depreciation Novak Auto Suplies Balance Sheet December 31, 2020 Accounts Payable Salaries and Wages Payable Mortgage Payable Total Liabilities Owner's Capital $ 39000 78000 98000 138000 178000 247000 $199000 (63000) 136000 Trademark 140000 Total Liabilities and Owner's Equity Total Assets $1054000 The total dollar amount of liabilities to be classified as current liabilities is O $55000. O $132000. O $187000. O $334000. $ 132000 55000 147000 334000 720000 $1054000
6. On December 31, 2021, the property dividends are yet to be distributed to owners. The entries on December 31, 2021 include all of the following except Group of answer choices A debit to retained earnings for P1,200,000 A credit to gain on impairment recovery for P1,200,000 A credit to property dividends payable for P1,200,000 None of these
Prepare a balance sheet for East & West Insurance on 31/12/2017 Following are balances from the books of East & West Insurance on 31/12/2017 (in JDs); Reinsurance receivable 9 000, Gross written premiums 25 000, Ceded premiums 7000 Reinsurance share in paying claims 2000, Deferred income tax 1800, Unearned premium reserve, net 4000, Accrued expenses1250, Income tax provision 350O, Reinsurance share of written premiums 10 000, Net change in unearned premiums reserve 1000, Recoveries 1000, Statutory reserve 7000, Outstanding claims reserve, net 2500, Checks under collection 5000, Paid claims12 000, Allocated employees' expenses 3000, Policies acquisition costs 250, Paid in capital ???, Reinsurance payable 5500, Accrued expenses 2500, Property and equipment, net 30 00O, Cash in hands and at banks 12000, Accounts Receivable 7000, Bank deposits, 50 000, Financial assets at fair value through profit or loss 12000, Allowance for doubtful debts 1000, Commissions revenue 1 200, Interest revenue…
The income statement disclosed the following items for the year: Depreciation expense $57,000 Gain on disposal of equipment 24,000 Net income 542,000 The changes in the current asset and liability accounts for the year are as follows: Increase(Decrease) Accounts receivable $9,800 Inventory (5,550) Prepaid insurance (1,000) Accounts payable (3,700) Income taxes payable 1,440 Dividends payable 2,200 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
This is the financial position of Hospital AMIH, Inc. regarding the repayment of its debts. These are the most relevant data of its financial statements: Total revenues $ 245,000 Total expenses $ 145,000 Depreciation $ 10,000 Changes in receivable accounts +$ 50,000 Changes in inventory ($ 20,000) Changes in accounts payable ($ 25,000) Total current liabilities $ 30,000 Total long-term debt $ 45,000 cash flow (total margin + depreciation expense) + interest expense/principal payment + interest expense Calculate the operating cash flow.
The following is list of accounts each represented by letter(s). A Accounts Payable U Loss from discontinued operations B Accounts Receivable V Losses due to fire E Accumulated Depreciation-Equip W Merchandise Inventory F Bonds Payable X Notes Payable G Cash Y Premium on Bonds Payable H Cost of Goods Sold Z Rent Expense I Capital Lease Payable AA Rent Revenue J Discount on Bonds Payable BB Retained Earnings K Equipment EE Salaries and Wages Payable L Federal Income Tax Withheld Payable FF Sales Returns M Federal Unemployment Taxes Payable GG Sales Revenues N FICA Taxes Payable HH Sales Taxes Payable O Income Summary II Shipping Expense P Income Taxes Payable JJ State Income Tax Withheld Payable Q Interest Expense KK State Unemployment Taxes Payable R Interest Payable LL Supplies S Land MM Tax Expense T Land Improvement NN Unearned Rent Revenue Example of Answer: G4000D,B2000D,GG5000C,HH1000CWhere G denotes…
Crippling Corporation had the following transactions during the quarter ended March 31, 2016: Loss from typhoon damage: P210,000 Payment of fire insurance premium for the calendar year 2016: P300,000 What amount should be included in Crippling's income statement for the quarter ended March 31, 2016? Typhoon loss Insurance expense А. 210,000 300,000 C. 52,500 75,000 В. 210,000 75,000 D. 0 300,000
The following information is for Sweet Day Real Estate: Sweet Day Real EstateBalance SheetDecember 31, 2021 Cash $ 24500 Accounts Payable $ 60600 Prepaid Insurance 29700 Salaries and Wages Payable 14700 Accounts Receivable 50300 Mortgage Payable 85800 Inventory 68600 Total Liabilities 161100 Land Held for Investment 83900 Land 118500 Buildings $101200 Common Stock $122100 Less Accumulated Depreciation (20200) Retained Earnings 244300 366400 81000 Trademark 71000 Total Liabilities and Stockholders’ Equity Total Assets $527500 $527500 The total dollar amount of assets to be classified as current assets is A) $257000. B) $104500. C) $173100. D) $188400.

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